PepsiCo Outlines Savings in Sustainability Report

PepsiCo Sustainability Initiatives Delivered More Than $375 Million in Estimated Cost Savings Since 2010

PepsiCo, Inc. (NYSE: PEP) today announced that its environmental sustainability programs saved the company more than $375 million since its goals were established in 2010. The savings were achieved through the continued progress of the company's water, energy, packaging and waste-reduction initiatives. During the same time period, the company delivered double-digit net revenue and operating profit growth1 – demonstrating that investments in sustainability are mutually beneficial for business and society.

These efforts are part of the company's commitment to Performance with Purpose, which is PepsiCo's vision to deliver financial performance over the long term by integrating sustainability into its business strategy, leaving a positive imprint on society and the environment. The company's achievements and progress are detailed in its 2014 Corporate Sustainability Report, Global Reporting Initiative (GRI) Report and first-ever sustainability microsite, howwillwe.com.

"Performance with Purpose helps drive our business growth and prepares us to meet the needs of our changing world," said Indra Nooyi, Chairman and CEO of PepsiCo. "As leaders gather this month to adopt the UN Sustainable Development Goals, PepsiCo will reflect on progress made to date and renew its focus on doing more in the years ahead. By continuing to apply our scale and capabilities to address shared societal challenges, we will further strengthen our company and the communities where we operate."

Highlights of the company's 2014 sustainability progress include the following:

• PepsiCo reduced its water use per unit of production by 23 percent since 2006, already exceeding its public target of a 20 percent reduction by the end of the 2015. This delivered cost savings of approximately $17 million in 2014. In addition, the company's absolute water use decreased by approximately one billion liters in 2014.
• In 2014, the company held absolute greenhouse gas (GHG) emissions for legacy operations flat against a 2008 baseline despite significant production volume growth in its business. By driving best practices through its Resource Conservation program and investments in greener fleet initiatives – such as alternative fuels and electric-vehicle delivery trucks – PepsiCo has improved the energy efficiency of legacy operations by nearly 16 percent compared with its 2006 baseline.
• In 2014, PepsiCo diverted 93 percent of its waste from reaching landfills, surpassing its goal of recycling and reusing 90 percent of its waste. The company decreased the overall amount of packaging by 89 million pounds in 2014 versus the prior year, and used 134 million pounds of food-grade recycled polyethylene terephthalate (rPET) packages and bottles, an increase of 23 percent from 2013.
• PepsiCo deployed its Sustainable Farming Initiative (SFI) to growers across 11 countries in 2014 and increased acres covered by more than 20 percent over the prior year. SFI guides global suppliers in sustainable agricultural practices and provides them with resources, training and support to meet PepsiCo's social, economic and environmental standards.
• The company continues to work towards achieving its goals for reducing sodium, added sugars and saturated fats in its foods and beverages. Five of 10 key countries have reached the company's saturated fats reduction goal; seven of 10 key countries have reduced average added sugars per serving compared to a 2006 baseline; and all 10 key countries achieved sodium reductions in 2014. At the same time, PepsiCo is continuing to invest in expanding its nutrition business, which represented approximately 20 percent of the company's net revenue in 2014.
• In 2014, through its philanthropic arm the PepsiCo Foundation, PepsiCo met its goal to partner to provide access to safe water to 6 million people in developing countries by the end of 2015. Communities in extreme poverty in some of the world's most water-stressed areas, including regions of Brazil, China, India, Mexico, Jordan and Colombia, received access to safe water through partnerships around the world.
• PepsiCo continues its focus on creating a safe, healthy and diverse workplace around the world. Representation of females and people of color in senior executive positions increased from 2013 to 2014. Additionally, PepsiCo reduced its lost time incident rate by 23 percent compared to 2013.

In addition to the PepsiCo Sustainability Report and Global Reporting Initiative (GRI) Report, the company has launched a groundbreaking companion microsite, howwillwe.com, which is an interactive and immersive experience to explore and share ideas about issues relevant to the world and to PepsiCo's business. The microsite engages users through compelling storytelling, vivid design and interactive digital elements to inspire discussion around the questions of "How Will We: Grow Sustainably, Thrive in a Changing Environment and Create Opportunity?"

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